Interview with Ron Herzog CEO and President of FPC

Date

Oct 13, 2015

Ron Herzog - CEO and President

Ron Herzog, CEO and President, has spent a number of years
developing extensive knowledge of the recruitment industry and
successful franchising since joining FPC in January 1995. Over the
next few years, he rose through the FPC ranks from an operations
and training consultant to the director of operations, executive
vice president, ascending to the role of president in 2005. Ron
became the CEO and president when he acquired ownership of the
business from founder Rudy Schott in 2007.

In addition to providing his vision for the company, he oversees
the day-to-day operations for the FPC system nationwide and has
developed a comprehensive training program that is a template for
success. He works personally with each office, in collaboration
with FPC's New York-based training team, to maximize system
productivity. Ron has developed a team of training consultants to
help each recruiter reach his or her potential.

Ron is considered an industry expert and has provided insight
into workforce trends for print publications, radio broadcasts and
industry podcasts.

Ron earned his MBA in management and undergraduate degree in
marketing and management. He is an avid tennis player and golfer
and currently resides in Westchester, NY, with his wife, with whom
he has raised two accomplished sons.

Tell us about the FPC concept:

F-O-R-T-U-N-E Personnel Consultants (FPC) started in 1959 and
has been franchising since 1973 in the Executive Search industry.
FPC franchisees offer services to help client companies fill their
critical staffing needs as well as assist mid to senior level
candidates find new opportunities. FPC franchisees and their staff
work closely within the industries they serve and become “industry
experts”, which allows them to provide proper advice, guidance and
counsel to their clients and candidates. Executive Search
professionals play a strategic role by helping the thousands of
small, medium and large companies identify and secure top
talent.

How and when did you become involved with FPC? and,
What was your background prior to joining FPC?

I started my career in Executive Search in 1982 as a full life
cycle recruiter with Leslie Kavanagh Associates which was
originally a subsidiary of Fortune. From there I took a
position with Medical Associates of America as the Director of
Human Resources from 1990 to 1995. I always kept in touch
with Rudy Schott, Fortune’s founder, and in 1995 he offered me the
opportunity to return to Fortune as Operations and Training
Consultant and eventually as the Director of Operations, Executive
Vice President, then President in 2005. I became the CEO and
president when I acquired ownership of the business from Rudy
Schott in 2007.

What are some of the advantages in being an FPC
franchisee?

Investing in yourself and controlling your destiny by starting
your own business can reap enormous rewards. Now, if you decide to
join FPC and build an executive search business you will enjoy the
following:

~ A business with low overhead, high margins and strong income
potential

~ Multiple revenue streams

~ In depth initial training and on-going training for the life
of your franchise (and the recruiters you hire) via FPC
University

~ A very scalable business

~ No travel

~ A network of like-minded franchisees that act as your own
“Board of Advisors”

~ Ability to split business with other offices so you never have
to say NO to candidates or clients

~ Recognition programs

As with all businesses, there are challenges you may encounter,
but assuming you follow the process you have invested in and are
willing to work for your dreams, those challenges will be
minimal.

Who is your ideal franchisee?

Well, nobody goes to school to be a recruiter, and most FPC
franchisees will tell you they “stumbled” across FPC or we
“stumbled” across them. In fact, Approximately 95% of our
franchisees had no recruiting experience. What they did have
was the knowledge and experience they gained in their business or
professional careers. Through FPC, they became
search and recruitment experts as well as business owners capable
of creating career opportunities for their employees. Another key
element all FPC franchisees have is the sincere desire to own their
own business and work hard to make it successful.

Tell us a little about the Executive Search
Market?

Executive Search was born out of the management consulting
industry, and is a $137B industry. Approximately 2.91 million
people are employed by staffing companies every business day and
employment of staffing specialists (recruiters) is expected to grow
21 percent from 2010 to 2020 - faster than the average for all
occupations.

For the seventh straight year, less than half of U.S. workers
are satisfied with their jobs and approximately 76 million baby
boomers will retire over the next 20 years - both indicators for a
very sustainable business. Don’t forget, executive search has been
around for almost 65 years!

What are some of the greatest lessons you’ve learned in
growing this franchise, and Do you have a mentor and is there
someone you use for inspiration?

Having come up through the ranks of FPC under the direction of
its founder, Rudy Schott, I understood early on in my tenure the
value of Rudy’s vision. The recruiting process that Rudy
developed and believed in is relevant today, over fifty years
later. He has always been and continues to be, a mentor and
source of inspiration for me. Our system is comprised of
passionate, determined owners who personify this culture and who
appreciate our hands-on approach in supporting them to grow their
offices and be successful. In addition to our commitment to
our replicable recruiting process, I have learned that the personal
touch is vital to maintain the FPC brand. Toward that end, we are
committed to staying the right size - large enough to have national
brand impact and small enough to maintain a high level of support
to our family of executive recruiting offices.

What advice do you have for someone looking to acquire
a Franchise?

In general, franchising is right for you if you want to take
control of your own future and invest in yourself. No matter what
franchise concept you choose, you need to be aware that although
there are established methodologies in place, you still need to
work hard. As with starting any new business, be prepared to have a
few “speed bumps” in your ramp-up period. The major advantage
of being in a franchise organization is that more than likely, the
existing franchisees have probably experienced the same “road
blocks” and provide a trusted resource for dealing with these
hurdles. Having like-minded business professionals who have been in
your shoes and can provide valuable advice is one of the strong
elements to the franchise business model.

In your opinion, why do you think that FPC would be a
great opportunity for someone?

Assuming that you have done adequate self-reflection/due
diligence and have determined that executive search fits your
personal and professional goals, there are several reasons why FPC
is far above the rest. The executive search business is a complex,
sophisticated, intellectually challenging business that offers
strong personal, professional and financial satisfaction.
Through interaction with your candidates and clients, you have an
opportunity to have a positive impact on their lives and
businesses. In addition, our business model is low overhead and
high margin and can easily be scaled up or down. Income potential
is extremely high assuming you are willing to follow our process
and become a student of the business. We are a phone business thus
travel is almost non- existent, affording an attractive work/life
balance. As with starting any business, you will experience
some ups and downs in your first year, but given that FPC has been
opening and supporting successful franchises for 40+ years, the
blueprint for success has been printed.